Bahamas Petroleum secures £8 million convertible loan note
announced on Thursday it has secured a £8 million convertible loan note facility with a Bahamian based institutional family-office investor as it prepares to drill Perseverance #1.
The loan note was issued at 90% face-value, implying a 3.33% per annum coupon, and is second ranking to the Conditional Convertible Notes issued last year.
Bahamas Petroleum also revised its estimated cost for Perseverance #1 to between $25 and $30 million, up from a previous guidance of between $20 and $25 million.
The company said it now has $36 million in total funding, including 1.3 billion of new shares rather than the 1.8 billion approved by shareholders in September of last year.
CEO Simon Potter commenting on the loan note issuance said: “we have now secured a funding package with considerably less overall dilution to shareholder equity than most commentators expected would be required.”
Shares were trading 12.5% higher at 3.825p on Thursday after the announcement
Bahamas Petroleum revealed that the loan note can be 90% drawn down in cash, available in staged instalments through April to July, matched for expected timing of drilling & payment schedules for equipment and contractors at Perseverance #1.
Mr. Potter said: “Today's facility affords us greater overall funding availability, and a high degree of financial flexibility so that we can respond as may be needed to real-time drilling results.”
He added: “At the same time, we continue to consider several farm-in options, with a view to further strategically enhancing the overall financial and operating capacity of the Company."
The company said it expects to have enough working capital for at least the next 12 months, and anticipating an April 2020 spud, targeting recoverable prospective resources of 0.7 - 1.4 billion barrels of oil.
Follow News & Updates from Bahamas Petroleum here:
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.